Colorado retailers took a big hit in December as economic worries and a paralyzing pre-Christmas blizzard kept consumers from spending.
Data released Thursday by the Colorado Department of Revenue showed that December retail sales barely budged from the previous year, inching up 0.08 percent. The tiny gain will likely be wiped out once inflation is factored in.
Nationally, December retail sales were up 3.9 percent, according to the National Retail Federation.
Overall data for the state show that sales were up 2.9 percent and sales-tax collections were up 0.8 percent from the previous year. Those data include spending in the agricultural, mining, transportation and other industry sectors.
The lackluster activity in the retail- trade sector came as no surprise to Vectra Bank Colorado economist Jeff Thredgold.
“There was more and more discussion about slowing in the national economy,” he said. “That impacted confidence levels a little bit.”
The popularity of gift cards also has helped push holiday spending into January and February. The blizzard that forced many retailers to close in the crucial few days before Christmas was also a major factor, Thredgold said.
“The storms certainly had an impact on us,” said Hugh Crawford, general manager of FlatIron Crossing mall in Broomfield. “We did not see the strength in December that we would have liked to.”
Crawford said several merchants at the mall told him they were on track to beat their expectations in the first few weeks of December.
That all changed when the storm hit.
The massive blizzard that struck Dec. 20 dumped 21 inches of snow on the city within 24 hours. The storm shut down Denver International Airport for 45 hours and forced many malls and stand-alone retailers to close because customers and employees couldn’t reach them.
While he was disappointed in the December numbers, Crawford said he’s encouraged by the mall’s January sales figures. While he would not disclose the mall’s January performance, he said, “It was a very strong increase in sales.”
Thredgold is also confident that January’s data will show an improvement.
“A lot of December spending was disrupted, so I’m sure we’ll see it showing up in January,” he said.
Staff writer Kristi Arellano can be reached at 303-954-1902 or karellano@denverpost.com.
